Uponor records a slower start to the year in the face of declining markets

Uponor Corporation	       Interim report Q1/2008  29 April 2008  15.00 EET 

Uponor records a slower start to the year in the face of declining markets      

- Net sales and operating profit remain behind the strong Q1/2007 figures       
- January-March net sales MEUR 269.2 (300.8), a change of -10.5%                
- January-March operating profit MEUR 21.3 (31.3), a change of -32.0%           
- Earnings per share EUR 0.19 (0.29)                                            
- Return on investment at 20.6% (32.5%), gearing at 91.9% (62.0%)               
- Full-year guidance remains unchanged: the management targets organic net sales
growth and at least 2007 operating profit level                                 



CEO JAN LÅNG COMMENTS ON THE PERFORMANCE FOR THE PERIOD:                        

- We are behind the exceptionally strong 2007 first quarter performance mainly  
due to developments in our key markets in Germany, the USA and Spain, which have
continued to be subdued and are clearly more difficult than in Q1/2007. Despite 
falling demand, we managed to maintain our gross profit margins by controlling  
overhead expense developments.   
                                               
- Our strategic initiatives to grow the business in selected European markets   
have progressed well, and many of our markets in East Europe continue to report 
high growth rates.        
                                                      
- The visibility of the building markets continues to be weak in the current    
turbulent financial environment. Based on information at hand regarding building
market developments and bearing in mind that the comparison figures for the     
second half of the year will be less challenging, we maintain our full-year     
guidance intact.                                                                




Webcast and presentation material:                                              

Following the release of this report, the presentation material for the interim 
report will be available at www.uponor.com/investors, under 'IR material'.      

Uponor will hold a webcast in English, at 5:30pm Finnish EET time (London       
3:30pm, New York 10:30am). You can access the webcast through www.uponor.com.   
Questions to the webcast can be sent to: ir@uponor.com.                         





Interim report for January-March 2008:                                          


Markets                                                                         

The building and construction market continues to suffer from difficulties      
originating in the financial market crisis in the USA, affecting value chain and
consumer behaviour throughout the world. The building market outlook,           
particularly with a view to housing solutions demand for residential segments   
within the market, remains weak, and the markets contracted further during the  
first quarter of 2008. This is particularly the case in the USA, where          
residential construction spending further declined from already very low levels,
as well as in Spain, where the housing market has been contracting substantially
since 2007. On the other hand, the German construction market showed a fairly   
stable performance during the first quarter, albeit at a low level, but even    
there the residential segment continued to decline. Overall, the Nordic         
countries maintained fairly satisfactory activity levels, while in Eastern      
Europe investment in building and construction sustained its strong upward      
trend.                                                                          

The non-residential markets, which maintained healthy volumes in 2007, have     
continued to perform fairly strongly, but indications of peaking are emerging in
both Europe and North America.                                                  

The infrastructure solutions markets also showed reasonable activity levels,    
fuelled by the warm winter, although a slight decline in demand was evident both
in the UK/Ireland area as well as in the Nordic countries.                      


Net sales                                                                       

Uponor's consolidated net sales for the first quarter totalled MEUR 269.2       
(300.8), which represents a 10.5 per cent decline against the strong comparables
of Q1/2007. The impact of exchange rate fluctuations was MEUR -9.2, of which    
5.4m is due to pound sterling and 3.4m to the U.S. dollar.                      

The decline was mainly attributable to low residential market activity levels in
key markets such as the USA, Germany and Spain, where the market contracted     
rapidly, having been on a very high level throughout much of 2007.              

As a contrast to the downward trend, several markets sustained healthy net sales
growth figures. These included many of the eastern European markets, some       
Central Europe markets (excluding Germany), the Nordic markets of Sweden and    
Norway as well as Canada, to name a few.                                        

For the most part, the non-residential markets maintained their earlier activity
levels, but signs of growth levelling off began to emerge during Q1, thus       
influencing sales in this sector. Sales in the infrastructure markets in the UK 
and Ireland declined somewhat from 2007 in local currencies, whereas in the     
Nordic countries there was clear growth in business despite slowing markets.    


Net sales by segment (January-March):                                           

--------------------------------------------------------------------------------
| MEUR                       |   Q1/ |     Q1/ |     Q1/ |   Change |   Change |
|                            |  2008 |    2007 |    2006 |   08/07  |    08/06 |
--------------------------------------------------------------------------------
| Central Europe             |  83.7 |    94.1 |    73.6 |   -11.0% |   +13.7% |
--------------------------------------------------------------------------------
| Nordic                     |  92.8 |    94.5 |    74.5 |    -1.8% |   +24.7% |
--------------------------------------------------------------------------------
| Europe - West, East, South |  99.8 |   116.4 |    87.7 |   -14.3% |   +13.9% |
--------------------------------------------------------------------------------
| North America              |  26.9 |    35.8 |    44.7 |   -24.9% |   -39.8% |
--------------------------------------------------------------------------------
| (North America, MUSD       |  41.0 |    47.1 |    53.7 |   -12.8% |  -23.6%) |
--------------------------------------------------------------------------------
| Eliminations               | -34.0 |   -40.0 |   -30.0 |          |          |
--------------------------------------------------------------------------------
| Total                      | 269.2 |   300.8 |   250.5 |   -10.5% |    +7.5% |
--------------------------------------------------------------------------------



Results and profitability                                                       

Group operating profit was MEUR 21.3 (31.3), down 32.0 per cent from the strong 
results of the first quarter of 2007. The operating profit margin fell from     
10.4% in 2007 to 7.9% in the current quarter.                                   

The decline in operating profit was mostly volume-driven, particularly affecting
those regions whose markets contracted most. Management of fixed costs helped to
reduce the negative impact caused by lower volumes, but the benefit was offset  
by investment in strategic initiatives to grow the business. Gross profit margin
was maintained, supported by adjustments in production output.                  


Operating profit by segment (January-March):                                    

--------------------------------------------------------------------------------
| MEUR                     |     Q1/ |     Q1/ |   Q1/ |    Change |    Change |
|                          |    2008 |    2007 |  2006 |     08/07 |     08/06 |
--------------------------------------------------------------------------------
| Central Europe           |     8.2 |    10.9 |   9.8 |    -24.4% |    -16.0% |
--------------------------------------------------------------------------------
| Nordic                   |     7.1 |    10.0 |   6.2 |    -28.2% |    +14.7% |
--------------------------------------------------------------------------------
| Europe - West, East,     |     9.9 |    13.2 |   7.0 |    -25.0% |    +40.4% |
| South                    |         |         |       |           |           |
--------------------------------------------------------------------------------
| North America            |    -0.7 |     0.8 |   1.7 |   -193.0% |   -142.5% |
--------------------------------------------------------------------------------
| (North America, MUSD     |    -1.1 |     1.0 |   2.0 |   -207.5% |  -153.7%) |
--------------------------------------------------------------------------------
| Other                    |    -3.5 |    -2.2 |  -1.0 |           |           |
--------------------------------------------------------------------------------
| Eliminations             |     0.3 |    -1.4 |  -1.9 |           |           |
--------------------------------------------------------------------------------
| Total                    |    21.3 |    31.3 |  21.8 |    -32.0% |     -2.3% |
--------------------------------------------------------------------------------


Consolidated profit before taxes for January-March came to MEUR 20.7 (31.3),    
down 33.7 per cent on the previous year. Taxes amounted to MEUR 6.5 (9.8), with 
a tax rate of 31.5 per cent (31.5). The profit for the financial period was MEUR
14.2 (21.5). Earnings per share (diluted and undiluted) were EUR 0.19 (0.29).   
Equity per share, also diluted, was 3.22 (3.56).                                


Investment and financing                                                        

No new major investment initiatives were launched in Q1, but existing programmes
were carried out according to plan. These included e.g. manufacturing and office
expansions in the USA and housing solutions capacity investments in the Nordic  
countries.                                                                      

Gross investments during the first quarter amounted to MEUR 8.2 (7.1).          
Depreciation was MEUR 9.2 (9.3) while net interest-bearing liabilities, as a    
result of dividend payments, increased to MEUR 216.5 (161.4). Gearing rose to   
91.9 per cent (62.0).                                                           


Key events                                                                      

Strong marketing campaigns related to brand marketing and relationship          
management were implemented during the first months of the year, in anticipation
of the high season of the spring and summer. All told, Uponor participated in   
more than a dozen major exhibitions, mostly in Europe and North America.        

Strategic initiatives focussed on the implementation of the high-rise strategy. 
The build up of resources and the organisation continued, and actions           
implemented earlier began to yield results. In Spain, for instance, resources   
were channelled into generating heating and cooling demand in the high-rise     
sector.                                                                         

Initiatives to boost plumbing systems sales were actively continued, supported  
by the continued high price of copper as well as an increased shift away from   
copper to PEX and composite pipe systems.                                       

The Oracle ERP system went live in Iberia in the beginning of January. Another  
new Uponor training academy was opened in France to support housing solutions   
growth there, while a project to harmonise training programmes began in the     
Europe - West, East, South organisation, in order to implement best practices   
and save on costs.                                                              


Human resources and organisation                                                

The number of Group employees (FTE) averaged 4,571 (4,354) during the period    
under review, an increase of 217 persons from 2007. At the end of the period,   
the Group had 4,567 (4,383) employees (FTE), 184 more than in the end of March  
2007. A considerable part of the increase is based on recruitments in the Europe
- WES region, in order to grow and expand the business in strategic growth      
territories.                                                                    


Annual General Meeting                                                          

The Uponor Annual General Meeting was held in Helsinki on 13 March 2008. The AGM
adopted the financial statements of Uponor Corporation and the Uponor Group and 
discharged members of the Board of Directors and the managing director from     
liability. It also decided to distribute a per-share dividend of EUR 1.40 for   
2007. The dividend payment took place on 27 March 2008.                         

It was resolved that Board membership would be five. The previous members, Jorma
Eloranta, Jari Paasikivi, Aimo Rajahalme, Anne-Christine Silfverstolpe Nordin,  
and Rainer S. Simon were all re-elected for a one-year term. The heretofore     
Chairman of the Board, Pekka Paasikivi, was not available for re-election.      

The AGM re-elected KPMG Oy Ab, Authorised Public Accountants, to continue as the
corporation's auditor.                                                          

The AGM authorised the Board to decide, within one year, on the buyback of the  
company's own shares resolve to buy back no more than 3,500,000 own shares,     
representing in total approximately 4.8 per cent of the total number of the     
shares of the corporation, using distributable earnings from unrestricted       
equity. The authorisation is valid for one year from the date of the AGM.       

The Board of Directors did not use this authorisation during the period under   
review, and announced that it had no imminent plans to do so. The Board has no  
other valid authorisations.                                                     


Share capital and shares                                                        

Uponor Corporation's share capital amounts to EUR 146,446,888 and its number of 
shares totals 73,206,944, with no change during the quarter.                    

The number of Uponor shares exchanged on the OMX Nordic Exchange in Helsinki    
increased in the first quarter to 26.1 (22.8) million shares, and the value in  
euros of the shares exchanged totalled EUR 433.3 (625.4) million. The market    
value of the share capital, at the end of the period, was EUR 1.1 (1.9) billion,
and the number of shareholders was 15,099 (9,489).                              

Uponor Corporation currently holds no treasury shares.                          


Near-term outlook                                                               

The residential building market slowdown affecting many of Uponor's target      
markets is expected to continue in 2008, driven by declining demand in Spain and
the USA in particular, and rendering the business environment in the current    
year clearly more challenging than in 2007.                                     

The visibility of the building markets continues to be weak in the current      
turbulent financial environment. Until now, the non-residential building market 
has been resilient in the face of the problems affecting the residential        
markets. There is, however, a risk that the current financial market turbulence 
may act as the catalyst for a more widespread recession affecting economies on a
larger scale, thereby also influencing the non-residential building market or   
the infrastructure construction markets.                                        

Uponor's financial results are exposed to a number of such strategic,           
operational, financial and hazard risks. A more detailed analysis of risks can  
be found in Uponor's Annual Report 2007.                                        

Based on the information at hand regarding building market development, and     
bearing in mind that the comparison figures for the second half of the year will
be less challenging, we are retaining our full-year guidance: Uponor expects to 
grow its net sales organically in 2008, although at a rate below its long-term  
targets, and at least achieve its 2007 operating profit level. The net sales    
growth target is supported by the geographic growth initiatives in place and the
penetration of plastic pipe systems in current and new applications as well as  
in new market segments. Continued efficiency improvements together with a       
special focus on containing costs in established operations is the key to       
achieving the prior year's operating profit level. Furthermore, compared to the 
exceptionally robust beginning to 2007, Uponor expects its net sales and        
operating profit in the first half of 2008 to fall behind the year-on-year      
results.                                                                        


Uponor Corporation                                                              
Board of Directors                                                              



For further information, please contact:                                        
Jan Lång, President and CEO, at tel. +358 20 129 2822                           
Jyri Luomakoski, CFO and Deputy CEO, at tel. +358 40 515 4498                   


Uponor Corporation                                                              


Tarmo Anttila                                                                   
Vice President, Communications                                                  
+358 20 129 2852                                                                



DISTRIBUTION:                                                                   
OMX Nordic Exchange - Helsinki                                                  
Media                                                                           
www.uponor.com                                                                  





Information on the interim report                                               

The figures in brackets in this interim report are the reference figures for the
equivalent period in 2007. The change percentages reported in the interim report
have been calculated from exact figures, not from rounded figures published in  
the interim report.                                                             


INTERIM REPORT 1-3/2008                                                         

The figures in this interim report are unaudited.                               


CONSOLIDATED INCOME STATEMENT                                                   

--------------------------------------------------------------------------------
| MEUR                                      |    1-3/ |      1-3/ |      1-12/ |
|                                           |    2008 |      2007 |       2007 |
|                                           |         |           |            |
--------------------------------------------------------------------------------
| Net sales                                 |   269.2 |     300.8 |    1,219.3 |
--------------------------------------------------------------------------------
| Cost of goods sold                        |   175.4 |     195.8 |      781.5 |
--------------------------------------------------------------------------------
| Gross profit                              |    93.8 |     105.0 |      437.8 |
--------------------------------------------------------------------------------
| Other operating income                    |     0.3 |       0.5 |        6.2 |
--------------------------------------------------------------------------------
| Dispatching and warehousing expenses      |     7.7 |       7.0 |       29.5 |
--------------------------------------------------------------------------------
| Sales and marketing expenses              |    45.6 |      47.9 |      185.5 |
--------------------------------------------------------------------------------
| Administration expenses                   |    15.2 |      15.6 |       57.3 |
--------------------------------------------------------------------------------
| Other operating expenses                  |     4.3 |       3.7 |       20.7 |
--------------------------------------------------------------------------------
| Operating profit                          |    21.3 |      31.3 |      151.0 |
--------------------------------------------------------------------------------
| Financial expenses, net                   |     0.6 |       0.0 |        2.5 |
--------------------------------------------------------------------------------
| Profit before taxes                       |    20.7 |      31.3 |      148.5 |
--------------------------------------------------------------------------------
| Income taxes                              |     6.5 |       9.8 |       46.6 |
--------------------------------------------------------------------------------
| Profit for the period                     |    14.2 |      21.5 |      101.9 |
--------------------------------------------------------------------------------
|                                           |         |           |            |
--------------------------------------------------------------------------------
| Earnings per share, EUR                   |    0.19 |      0.29 |       1.39 |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR           |    0.19 |      0.29 |       1.39 |
--------------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEET                                                      

--------------------------------------------------------------------------------
| MEUR                                       |    31.3. |    31.3. |    31.12. |
|                                            |     2008 |     2007 |      2007 |
|                                            |          |          |           |
--------------------------------------------------------------------------------
| Assets                                     |          |          |           |
--------------------------------------------------------------------------------
| Non-current assets                         |          |          |           |
--------------------------------------------------------------------------------
| Property, plant and equipment              |    212.8 |    208.2 |     218.9 |
--------------------------------------------------------------------------------
| Intangible assets                          |    101.1 |     96.9 |     101.7 |
--------------------------------------------------------------------------------
| Securities and long-term investments       |      3.4 |      3.5 |       3.6 |
--------------------------------------------------------------------------------
| Deferred tax assets                        |     16.2 |     21.5 |      16.3 |
--------------------------------------------------------------------------------
| Total non-current assets                   |    333.5 |    330.1 |     340.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                             |          |          |           |
--------------------------------------------------------------------------------
| Inventories                                |    148.4 |    143.1 |     150.6 |
--------------------------------------------------------------------------------
| Accounts receivable                        |    199.4 |    217.7 |     144.6 |
--------------------------------------------------------------------------------
| Other receivables                          |     18.4 |     12.4 |      22.3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                  |     12.9 |      8.4 |       6.3 |
--------------------------------------------------------------------------------
| Total current assets                       |    379.1 |    381.6 |     323.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets                               |    712.6 |    711.7 |     664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities       |          |          |           |
--------------------------------------------------------------------------------
| Shareholders' equity                       |    235.4 |    260.3 |     333.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                    |          |          |           |
--------------------------------------------------------------------------------
| Interest-bearing liabilities               |     17.9 |     20.4 |      14.7 |
--------------------------------------------------------------------------------
| Deferred tax liability                     |     14.4 |     16.5 |      15.0 |
--------------------------------------------------------------------------------
| Provisions                                 |      8.7 |     10.7 |       8.8 |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities    |     24.3 |     25.8 |      28.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities              |     65.3 |     73.4 |      66.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities                        |          |          |           |
--------------------------------------------------------------------------------
| Interest-bearing liabilities               |    211.5 |    149.4 |      76.1 |
--------------------------------------------------------------------------------
| Provisions                                 |      6.2 |      5.4 |       7.4 |
--------------------------------------------------------------------------------
| Accounts payable                           |     78.4 |     86.2 |      75.2 |
--------------------------------------------------------------------------------
| Other liabilities                          |    115.8 |    137.0 |     106.0 |
--------------------------------------------------------------------------------
| Total current liabilities                  |    411.9 |    378.0 |     264.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities |    712.6 |    711.7 |     664.3 |
--------------------------------------------------------------------------------


CONSOLIDATED CASH FLOW STATEMENT                                                

--------------------------------------------------------------------------------
| MEUR                                       |     1-3/ |     1-3/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
|                                            |          |          |           |
--------------------------------------------------------------------------------
| Net cash from operations                   |     31.6 |     41.3 |     186.0 |
--------------------------------------------------------------------------------
| Change in net working capital              |    -38.8 |    -57.8 |     -45.1 |
--------------------------------------------------------------------------------
| Income taxes paid                          |     -8.8 |     -9.4 |     -42.7 |
--------------------------------------------------------------------------------
| Interest paid                              |     -1.8 |     -1.1 |      -7.1 |
--------------------------------------------------------------------------------
| Interest received                          |      0.4 |      0.4 |       2.7 |
--------------------------------------------------------------------------------
| Cash flow from operations                  |    -17.4 |    -26.6 |      93.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments                 |          |          |           |
--------------------------------------------------------------------------------
| Purchase of fixed assets                   |     -8.2 |     -7.1 |     -58.1 |
--------------------------------------------------------------------------------
| Proceeds from sales of fixed assets        |      0.0 |      0.2 |       5.0 |
--------------------------------------------------------------------------------
| Received dividend                          |        - |        - |       0.2 |
--------------------------------------------------------------------------------
| Loan repayments                            |      0.0 |      0.0 |       0.2 |
--------------------------------------------------------------------------------
| Cash flow from investments                 |     -8.2 |     -6.9 |     -52.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing                   |          |          |           |
--------------------------------------------------------------------------------
| Borrowings of debt                         |    135.2 |    132.5 |      58.9 |
--------------------------------------------------------------------------------
| Repayments of debt                         |        - |      0.0 |      -1.7 |
--------------------------------------------------------------------------------
| Dividends paid                             |   -102.5 |   -102.5 |    -102.5 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities       |     -0.5 |     -0.5 |      -1.9 |
--------------------------------------------------------------------------------
| Cash flow from financing                   |     32.2 |     29.5 |     -47.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Conversion differences for cash and cash   |      0.0 |      0.0 |       0.0 |
| equivalents                                |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents        |      6.6 |     -4.0 |      -6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at 1 January     |      6.3 |     12.4 |      12.4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period |     12.9 |      8.4 |       6.3 |
--------------------------------------------------------------------------------
| Change according to balance sheet          |      6.6 |     -4.0 |      -6.1 |
--------------------------------------------------------------------------------



STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                                    

--------------------------------------------------------------------------------
| MEUR       | Share | Share  | Other | Treasu | Transla | Retai    | Total    |
|            | capi  | premiu | reser | ry     | tion    | ned earn |          |
|            | tal   | m      | ves   | shares | reserve | ings     |          |
--------------------------------------------------------------------------------
| Balance at | 146.4 |   35.6 |  14.3 |      - |   -21.6 |    158.3 |    333.0 |
| 31 Dec     |       |        |       |        |         |          |          |
| 2007       |       |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Translation        |        |       |        |    -9.1 |          |     -9.1 |
| differences        |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Cash flow hedges            |       |        |         |          |          |
--------------------------------------------------------------------------------
| - recorded in      |        |  -0.2 |        |         |          |     -0.2 |
| equity, net of     |        |       |        |         |          |          |
| taxes              |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Net profit for the |        |       |        |         |     14.2 |     14.2 |
| period             |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Total recognised   |        |  -0.2 |        |    -9.1 |     14.2 |      4.9 |
| income and expense |        |       |        |         |          |          |
| for the period     |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Dividend paid (EUR |        |       |        |         |   -102.5 |   -102.5 |
| 1.40 per share)    |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Other adjustments  |        |   0.0 |        |         |      0.0 |      0.0 |
--------------------------------------------------------------------------------
| Balance at | 146.4 |   35.6 |  14.1 |      - |   -30.7 |     70.0 |    235.4 |
| 31 Mar     |       |        |       |        |         |          |          |
| 2008       |       |        |       |        |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 146.4 |   42.5 |   6.7 |   -1.6 |   -10.2 |    160.6 |    344.4 |
| 31 Dec     |       |        |       |        |         |          |          |
| 2006       |       |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Translation        |        |       |        |    -3.1 |          |     -3.1 |
| differences        |        |       |        |         |          |          |
--------------------------------------------------------------------------------
| Net profit for the period   |       |        |         |     21.5 |     21.5 |
--------------------------------------------------------------------------------
| Total recognised income and |       |        |    -3.1 |     21.5 |     18.4 |
| expense for the period      |       |        |         |          |          |
--------------------------------------------------------------------------------
| Dividend paid (EUR 1.40 per |       |        |         |   -102.5 |   -102.5 |
| share)                      |       |        |         |          |          |
--------------------------------------------------------------------------------
| Share based incentive plan  |       |    1.3 |         |     -1.3 |        - |
--------------------------------------------------------------------------------
| Other adjustments  |        |   0.1 |        |         |     -0.1 |      0.0 |
--------------------------------------------------------------------------------
| Balance 31 | 146.4 |   42.5 |   6.8 |   -0.3 |   -13.3 |     78.2 |    260.3 |
| Mar 2007   |       |        |       |        |         |          |          |
--------------------------------------------------------------------------------

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS                          

ACCOUNTING PRINCIPLES                                                           

The interim report has been prepared in compliance with International Financial 
Reporting Standards (IFRS) as adopted by EU and IAS 34 Interim Financial        
Reporting. In interim reports Uponor Group follows the same principles as in the
annual financial statement 2007.                                                


PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS                             
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR                                       |     1-3/ |     1-3/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Gross investment                           |      8.2 |      7.1 |      58.1 |
--------------------------------------------------------------------------------
|  - % of net sales                          |      3.0 |      2.4 |       4.8 |
--------------------------------------------------------------------------------
| Depreciation                               |      9.2 |      9.3 |      37.2 |
--------------------------------------------------------------------------------
| Book value of disposed fixed assets        |      0.0 |      0.2 |       2.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PERSONNEL                                  |          |          |           |
--------------------------------------------------------------------------------
| Converted to full time employees           |     1-3/ |     1-3/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average                                    |    4,571 |    4,354 |     4,497 |
--------------------------------------------------------------------------------
| End of the period                          |    4,567 |    4,383 |     4,581 |
--------------------------------------------------------------------------------
| OWN SHARES                                 |          |          |           |
--------------------------------------------------------------------------------
|                                            |    31.3. |    31.3. |    31.12. |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Own shares held by the company, pcs        |        - |   16,500 |         - |
--------------------------------------------------------------------------------
| - of share capital, %                      |        - |   0.02 % |         - |
--------------------------------------------------------------------------------
| - of voting rights, %                      |        - |   0.02 % |         - |
--------------------------------------------------------------------------------



SEGMENT INFORMATION                                                             

--------------------------------------------------------------------------------
| Geographical segments                                                        |
--------------------------------------------------------------------------------
|            | 1-3/2008                   | 1-3/2007                           |
--------------------------------------------------------------------------------
| MEUR       | Exter |   Inter |    Total |        Exter |      Inter |  Total |
|            |   nal |     nal |          |          nal |        nal |        |
--------------------------------------------------------------------------------
| Segment    |       |         |          |              |            |        |
| revenue    |       |         |          |              |            |        |
--------------------------------------------------------------------------------
| Central    |  67.3 |    16.4 |     83.7 |         75.5 |       18.6 |   94.1 |
| Europe     |       |         |          |              |            |        |
--------------------------------------------------------------------------------
| Nordic     |  75.8 |    17.0 |     92.8 |         73.8 |       20.7 |   94.5 |
--------------------------------------------------------------------------------
| Europe -   |  99.2 |     0.6 |     99.8 |        115.8 |        0.6 |  116.4 |
| West,      |       |         |          |              |            |        |
| East,      |       |         |          |              |            |        |
| South      |       |         |          |              |            |        |
--------------------------------------------------------------------------------
| North      |  26.9 |       - |     26.9 |         35.7 |        0.1 |   35.8 |
| America    |       |         |          |              |            |        |
--------------------------------------------------------------------------------
| Eliminatio |     - |   -34.0 |    -34.0 |            - |      -40.0 |  -40.0 |
| ns         |       |         |          |              |            |        |
--------------------------------------------------------------------------------
| Total      | 269.2 |       - |    269.2 |        300.8 |          - |  300.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|            |                            | 1-12/2007                          |
--------------------------------------------------------------------------------
|            |          |          |      |   Exter |      Inter |       Total |
|            |          |          |      |     nal |        nal |             |
--------------------------------------------------------------------------------
| Segment revenue                         |         |            |             |
--------------------------------------------------------------------------------
| Central Europe                          |   283.7 |       67.6 |       351.3 |
--------------------------------------------------------------------------------
| Nordic                                  |   325.4 |       72.3 |       397.7 |
--------------------------------------------------------------------------------
| Europe - West, East, South              |   443.0 |        2.4 |       445.4 |
--------------------------------------------------------------------------------
| North America                           |   167.2 |        2.0 |       169.2 |
--------------------------------------------------------------------------------
| Eliminations                            |       - |     -144.3 |      -144.3 |
--------------------------------------------------------------------------------
| Total                                   | 1,219.3 |          - |     1,219.3 |
--------------------------------------------------------------------------------
| MEUR       |          |          |      |    1-3/ |       1-3/ |       1-12/ |
|            |          |          |      |    2008 |       2007 |        2007 |
--------------------------------------------------------------------------------
| Segment result                          |         |            |             |
--------------------------------------------------------------------------------
| Central Europe                          |     8.2 |       10.9 |        41.1 |
--------------------------------------------------------------------------------
| Nordic                                  |     7.1 |       10.0 |        49.7 |
--------------------------------------------------------------------------------
| Europe - West, East, South              |     9.9 |       13.2 |        57.5 |
--------------------------------------------------------------------------------
| North America                           |    -0.7 |        0.8 |        16.6 |
--------------------------------------------------------------------------------
| Others                                  |    -3.5 |       -2.2 |       -13.2 |
--------------------------------------------------------------------------------
| Eliminations                            |     0.3 |       -1.4 |        -0.7 |
--------------------------------------------------------------------------------
| Total                                   |    21.3 |       31.3 |       151.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment depreciation and impairments    |         |            |             |
--------------------------------------------------------------------------------
| Central Europe                          |     2.0 |        1.9 |         7.7 |
--------------------------------------------------------------------------------
| Nordic                                  |     2.4 |        2.7 |        10.1 |
--------------------------------------------------------------------------------
| Europe - West, East, South              |     2.4 |        2.6 |         9.9 |
--------------------------------------------------------------------------------
| North America                           |     1.3 |        1.3 |         5.6 |
--------------------------------------------------------------------------------
| Others                                  |     1.0 |        0.8 |         3.3 |
--------------------------------------------------------------------------------
| Eliminations                            |     0.1 |        0.0 |         0.6 |
--------------------------------------------------------------------------------
| Total                                   |     9.2 |        9.3 |        37.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment investments                     |         |            |             |
--------------------------------------------------------------------------------
| Central Europe                          |     1.5 |        1.4 |        11.0 |
--------------------------------------------------------------------------------
| Nordic                                  |     1.7 |        2.6 |        15.5 |
--------------------------------------------------------------------------------
| Europe - West, East, South              |     1.7 |        1.4 |        10.1 |
--------------------------------------------------------------------------------
| North America                           |     2.8 |        1.6 |        13.4 |
--------------------------------------------------------------------------------
| Others                                  |     0.5 |        0.1 |         8.1 |
--------------------------------------------------------------------------------
| Total                                   |     8.2 |        7.1 |        58.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment assets                          |         |            |             |
--------------------------------------------------------------------------------
| Central Europe                          |   185.2 |      194.0 |       181.4 |
--------------------------------------------------------------------------------
| Nordic                                  |   203.2 |      215.7 |       185.3 |
--------------------------------------------------------------------------------
| Europe - West, East, South              |   238.3 |      241.3 |       240.1 |
--------------------------------------------------------------------------------
| North America                           |   101.6 |      106.8 |       123.7 |
--------------------------------------------------------------------------------
| Others                                  |   535.4 |      586.9 |       577.9 |
--------------------------------------------------------------------------------
| Eliminations                            |  -551.1 |     -633.0 |      -644.1 |
--------------------------------------------------------------------------------
| Total                                   |   712.6 |      711.7 |       664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment liabilities                     |         |            |             |
--------------------------------------------------------------------------------
| Central Europe                          |   115.0 |      118.3 |       119.0 |
--------------------------------------------------------------------------------
| Nordic                                  |   248.1 |      274.4 |       233.5 |
--------------------------------------------------------------------------------
| Europe - West, East, South              |   101.3 |      132.1 |       101.9 |
--------------------------------------------------------------------------------
| North America                           |    37.8 |       44.3 |        55.0 |
--------------------------------------------------------------------------------
| Others                                  |   542.8 |      532.8 |       477.8 |
--------------------------------------------------------------------------------
| Eliminations                            |  -567.8 |     -650.5 |      -655.9 |
--------------------------------------------------------------------------------
| Total                                   |   477.2 |      451.4 |       331.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                         |    1-3/ |       1-3/ |       1-12/ |
|                                         |    2008 |       2007 |        2007 |
--------------------------------------------------------------------------------
| Segment personnel, average              |         |            |             |
--------------------------------------------------------------------------------
| Central Europe                          |   1,253 |      1,237 |       1,261 |
--------------------------------------------------------------------------------
| Nordic                                  |   1,361 |      1,339 |       1,380 |
--------------------------------------------------------------------------------
| Europe - West, East, South              |   1,300 |      1,173 |       1,224 |
--------------------------------------------------------------------------------
| North America                           |     592 |        549 |         573 |
--------------------------------------------------------------------------------
| Others                                  |      65 |         56 |          59 |
--------------------------------------------------------------------------------
| Total                                   |   4,571 |      4,354 |       4,497 |
--------------------------------------------------------------------------------


Business segments                                                               
--------------------------------------------------------------------------------
|                        |          | 1-3/2008                                 |
--------------------------------------------------------------------------------
| Segment external revenue          |        Housing |       Infra |     Total |
|                                   |      solutions |   structure |           |
|                                   |                |   solutions |           |
--------------------------------------------------------------------------------
| Central Europe                    |           67.3 |           - |      67.3 |
--------------------------------------------------------------------------------
| Nordic                            |           31.6 |        44.2 |      75.8 |
--------------------------------------------------------------------------------
| Europe - West, East, South        |           61.6 |        37.6 |      99.2 |
--------------------------------------------------------------------------------
| North America                     |           26.9 |           - |      26.9 |
--------------------------------------------------------------------------------
| Total                             |          187.4 |        81.8 |     269.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                        |          | 1-3/2007                                 |
--------------------------------------------------------------------------------
| Segment external revenue          |    Housing |           Infra |     Total |
|                                   |  solutions |       structure |           |
|                                   |            |       solutions |           |
--------------------------------------------------------------------------------
| Central Europe                    |       75.5 |               - |      75.5 |
--------------------------------------------------------------------------------
| Nordic                            |       33.5 |            40.3 |      73.8 |
--------------------------------------------------------------------------------
| Europe - West, East, South        |       71.5 |            44.3 |     115.8 |
--------------------------------------------------------------------------------
| North America                     |       35.7 |               - |      35.7 |
--------------------------------------------------------------------------------
| Total                             |      216.2 |            84.6 |     300.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                        |          | 1-12/2007                                |
--------------------------------------------------------------------------------
| Segment external revenue          | Housing    | Infra           | Total     |
|                                   | solutions  | structure       |           |
|                                   |            | solutions       |           |
--------------------------------------------------------------------------------
| Central Europe                    |      283.7 |               - |     283.7 |
--------------------------------------------------------------------------------
| Nordic                            |      133.8 |           191.6 |     325.4 |
--------------------------------------------------------------------------------
| Europe - West, East, South        |      255.2 |           187.8 |     443.0 |
--------------------------------------------------------------------------------
| North America                     |      167.2 |               - |     167.2 |
--------------------------------------------------------------------------------
| Total                             |      839.9 |           379.4 |   1,219.3 |
--------------------------------------------------------------------------------


CONTINGENT LIABILITIES                                                          

--------------------------------------------------------------------------------
| MEUR                                       |    31.3. |    31.3. |    31.12. |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Group:                                     |          |          |           |
--------------------------------------------------------------------------------
| Pledges                                    |          |          |           |
--------------------------------------------------------------------------------
| - on own behalf                            |        - |      0.0 |         - |
--------------------------------------------------------------------------------
| Mortgages                                  |          |          |           |
--------------------------------------------------------------------------------
| - on own behalf                            |      0.4 |        - |       0.0 |
--------------------------------------------------------------------------------
| Guarantees                                 |          |          |           |
--------------------------------------------------------------------------------
| - on behalf of others                      |      9.8 |     12.7 |      11.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Parent company:                            |          |          |           |
--------------------------------------------------------------------------------
| Guarantees                                 |          |          |           |
--------------------------------------------------------------------------------
| - on behalf of subsidiaries                |      9.9 |     11.1 |      10.5 |
--------------------------------------------------------------------------------
| - on behalf of others                      |      7.4 |      9.8 |       9.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING LEASE COMMITMENTS                |     24.3 |     23.6 |      24.4 |
--------------------------------------------------------------------------------


DERIVATIVE CONTRACTS                                                            

--------------------------------------------------------------------------------
| MEUR          |    Nomi | Fair    |    Nomi | Fair     |     Nomi | Fair     |
|               |     nal |   value |     nal |    value |      nal |    value |
|               |   value |   31.3. |   value |    31.3. |    value |   31.12. |
|               |   31.3. |    2008 |   31.3. |     2007 |   31.12. |     2007 |
|               |    2008 |         |    2007 |          |     2007 |          |
--------------------------------------------------------------------------------
| Currency      |   119.1 |     1.9 |    16.7 |      0.1 |     85.9 |      1.7 |
| derivatives   |         |         |         |          |          |          |
| - Forward     |         |         |         |          |          |          |
| agreements    |         |         |         |          |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity     |     4.2 |     0.3 |     5.2 |     -0.6 |      3.6 |      0.8 |
| derivatives   |         |         |         |          |          |          |
| - Forward     |         |         |         |          |          |          |
| agreements    |         |         |         |          |          |          |
--------------------------------------------------------------------------------


RELATED-PARTY TRANSACTIONS                                                      

--------------------------------------------------------------------------------
| MEUR                                       |     1-3/ |     1-3/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Net sales to associated companies          |      0.9 |      4.1 |       5.2 |
--------------------------------------------------------------------------------
| Purchases from associated companies        |      0.5 |      0.5 |       2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balances at the end of the period          |          |          |           |
--------------------------------------------------------------------------------
| Loan receivable from associated companies  |      0.9 |      1.1 |       1.0 |
--------------------------------------------------------------------------------
| Accounts and other receivables             |      0.7 |      0.9 |       1.1 |
--------------------------------------------------------------------------------
| Accounts and other liabilities             |      0.3 |      0.5 |       0.2 |
--------------------------------------------------------------------------------


KEY FIGURES                                                                     

--------------------------------------------------------------------------------
|                                            |     1-3/ |     1-3/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Earnings per share, EUR                    |     0.19 |     0.29 |      1.39 |
--------------------------------------------------------------------------------
| - diluted                                  |     0.19 |     0.29 |      1.39 |
--------------------------------------------------------------------------------
| Operating profit, %                        |      7.9 |     10.4 |      12.4 |
--------------------------------------------------------------------------------
| Return on equity, %, cumulative            |     20.0 |     28.4 |      30.1 |
--------------------------------------------------------------------------------
| Return on investment, %, cumulative        |     20.6 |     32.5 |      39.2 |
--------------------------------------------------------------------------------
| Solvency ratio, %                          |     33.1 |     36.6 |      50.2 |
--------------------------------------------------------------------------------
| Gearing, %                                 |     91.9 |     62.0 |      25.4 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities           |    216.5 |    161.4 |      84.5 |
--------------------------------------------------------------------------------
| Equity per share, EUR                      |     3.22 |     3.56 |      4.55 |
--------------------------------------------------------------------------------
| - diluted                                  |     3.22 |     3.56 |      4.55 |
--------------------------------------------------------------------------------
| Trading prices of shares                   |          |          |           |
--------------------------------------------------------------------------------
| - low, EUR                                 |    13.62 |    25.56 |     15.31 |
--------------------------------------------------------------------------------
| - high, EUR                                |    18.91 |    30.40 |     31.45 |
--------------------------------------------------------------------------------
| - average, EUR                             |    16.61 |    27.39 |     23.76 |
--------------------------------------------------------------------------------
| Shares traded                              |          |          |           |
--------------------------------------------------------------------------------
| - 1,000 pcs                                |   26,095 |   22,832 |    99,423 |
--------------------------------------------------------------------------------
| - MEUR                                     |      433 |      625 |     2,362 |
--------------------------------------------------------------------------------



DEFINITIONS OF KEY RATIOS                                                       


Return on equity (ROE), %	                                                      
			                                                                             
    Profit before taxes - taxes                                                 
=   --------------------------------- x 100                                     
    Shareholders' equity + minority                                             
    interest, average                                                           


Return on investment (ROI), %                                                   

    Profit before taxes + interest and                                          
    other financing costs                                                       
=   ------------------------------------------- x 100                           
    Balance sheet total - non-interest-bearing                                  
    liabilities, average                                                        


Solvency, %                                                                     

    Shareholders' equity + minority interest                                    
=   ------------------------------------------------- x 100                     
    Balance sheet total - advance payments received                             


Gearing, %                                                                      

    Net interest-bearing liabilities                                            
=   ------------------------------------------ x 100                            
    Shareholders' equity + minority interest                                    


Net interest-bearing liabilities                                                

=   Interest-bearing liabilities - cash, bank receivables and                   
    financial                                                                   
assets                                                                          


Earnings per share (EPS)                                                        

    Profit for the period                                                       
=   ---------------------------------------------                               
Number of shares adjusted for share issue in                                    
    financial period excluding                                                  
treasury shares                                                                 


Equity per share ratio                                                          

    Shareholders' equity                                                        
=   --------------------------------------                                      
    Average number of shares adjusted for                                       
    share issue at end of year                                                  


Average share price                                                             

    Total value of shares traded (EUR)                                          
=   ----------------------------------                                          
    Total number of shares traded